the oil market remains fragile because of the Coronavirus

the oil market remains fragile because of the Coronavirus
the oil market remains fragile because of the Coronavirus

The technical committee for controlling production cuts, affiliated with the “OPEC +” alliance, said on Wednesday that the oil market still remains weak and fragile, due to the persistent pressures imposed by the context of the coronavirus pandemic.

The committee said in an official document posted on the OPEC website that “demand for oil has increased over the past month, but doubts about the market and its fragility still persist due to the pandemic.”

According to the statement, OPEC Secretary General Mohamed Barkindo said: “There is a need for members to remain very cautious and pay attention to very volatile market conditions … But in general, we expect what crude demand improves by 5.1% in 2021 “.

Discussions will begin at the level of energy ministers within the commission to control production cuts of the OPEC + alliance, and this, during the days from Wednesday to Thursday, led by Saudi Arabia and Russia. It is a question of reviewing, during these two days, the recommendations of the members of the committee at the technical level, concerning the future of the production reduction agreement.

The OPEC + alliance is currently reducing its production to 7.18 million barrels per day until the end of next April, against 7.2 million barrels per day last January.

For its part, Saudi Arabia has voluntarily reduced its production by an additional quota of one million barrels per day, from the beginning of last February until the end of next April.

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